Forums > General Discussion   Shooting the breeze...

HOLDEN - Invincible or Inevitable?

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Created by Stuthepirate > 9 months ago, 11 Dec 2013
Stuthepirate
SA, 3589 posts
12 Dec 2013 12:40AM
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Football, Meat Pies, Kangaroos and Holdens.
Could we have done more or was the writing on the wall?
I've grown up in Holdens. (though i don't own one now)
It's a sad day today and i feel for all the employees and workers who will endure the repercussions of this directly.

Wollemi
NSW, 349 posts
12 Dec 2013 1:17AM
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Your first line hints at national 'pride' (although Geelong takes pride in a Holden factory being there). If we believe the latter ideal of localised 'pride' - did car manufacturing ever exist in Western Australia?

What do you drive? I have a Subaru - does this show that I should have done more?

theDoctor
NSW, 5780 posts
12 Dec 2013 1:22AM
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the end of australia

if you don't understand why

you're not australian



Mark _australia
WA, 22423 posts
11 Dec 2013 10:33PM
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What - a subsidiary of an american company made crap cars in Oz that were designed to be fleet cars - "last 50,000km then fk them off to dealers"
and we should be proud of that?

Yes a sad thing for workers - a LOT of them - but really can we sustain the auto industry's poor cousin any longer? The Japs and Euro's buggered us.

youngbull
QLD, 825 posts
12 Dec 2013 12:43AM
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On the apathy note yes its bad. On the other hand my business is struggling where is my handout. So bugger'em. I bet upper management and the ceo's ect never took a pay cut to assist..

What really ****s me is the fact I can order an Aussie made part cheaper oversea's including freight, and it arrives at my doorstep.
We are so backwards in trying to go forwards.


edit: The Japanese and Euro's did nothing we did it to our-self's out of just plain and simple greed.

dusta
WA, 2940 posts
11 Dec 2013 11:38PM
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youngbull said..

On the apathy note yes its bad. On the other hand my business is struggling where is my handout. So bugger'em. I bet upper management and the ceo's ect never took a pay cut to assist..

What really ****s me is the fact I can order an Aussie made part cheaper oversea's including freight, and it arrives at my doorstep.
We are so backwards in trying to go forwards.


edit: The Japanese and Euro's did nothing we did it to our-self's out of just plain and simple greed.



exactly , our biggest govt department clients had their budgets cut last financial year, therefore removing millions and millions from my books . Where is my handout ?

While i feel for the workers f$ck holden i say

Sailhack
VIC, 5000 posts
12 Dec 2013 7:35AM
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Wollemi said...
(although Geelong takes pride in a Holden factory being there).


?
Geelong = Ford.

Sad day in Aussie history.

FormulaNova
WA, 14734 posts
12 Dec 2013 5:05AM
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Mark _australia said..

What - a subsidiary of an american company made crap cars in Oz that were designed to be fleet cars - "last 50,000km then fk them off to dealers"
and we should be proud of that?

Yes a sad thing for workers - a LOT of them - but really can we sustain the auto industry's poor cousin any longer? The Japs and Euro's buggered us.



That's where I wonder why people have such a negative attitude towards local cars. I have had commodores that I bought at over 200K kms, and ran them for another 100K Kms. They were fine, just old when I was done with them. How many euro or jap cars have these sorts of kilometres and don't have the same problems? If the cars were crap, the fleets wouldn't run them, they would go for something that was more reliable/cheaper.

My current Falcon is at 181K Kms, and runs really well.

Is the difference between experiences the difference in having a good mechanic? I do almost all the work on my cars, and so far I don't recall any major problems. Maybe the difference is in being able to identify faults properly and fix them, or even preempt them instead of just changing the oil and filter and charging a fortune.

I bought a commodore brand new about ten years ago, and the minor faults it had were a problem because of the dealer servicing. Untrained monkeys, overcharging, and ignoring the warranty work, while trying to charge hundreds of dollars for an oil change. I started going to a proper mechanic while it was in warranty, and then doing everything myself when it was out of warranty. The result, the car was in top condition when I went to sell it.

Having said this, with a different car a few years later, a mate bought the exact same car commodore as me, in better condition if anything, and it cost him a lot more than mine cost me because of the regular servicing (read oil changes) that he used to get. I think his mechanic was trying to pay off a mansion, so things that were minor in mine seemed to require replacing in his.

Its funny when people criticize a car because it is good as a fleet car, it is good as a taxi, and then say they are crap.

FormulaNova
WA, 14734 posts
12 Dec 2013 5:07AM
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dusta said..

exactly , our biggest govt department clients had their budgets cut last financial year, therefore removing millions and millions from my books . Where is my handout ?

While i feel for the workers f$ck holden i say


So, how many thousands of people do you directly employ, and how many thousands rely indirectly on this same business?

Millions and millions from your books? Half your luck!

kiteboy dave
QLD, 6525 posts
12 Dec 2013 8:47AM
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Abbott government pushed them out, for better or worse.

If they have a sound plan to take us in a new direction away from manufacturing, then it might be a good thing.

I struggle to see them as more than an out of control wrecking ball who think they're still in opposition.

I have my doubts about whether they can have the vision or the strength to take on the rebuilding.

Mobydisc
NSW, 9029 posts
12 Dec 2013 9:49AM
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In the end Holden is an American company. The bosses have a strategy of closing down manufacturing operations in high cost, developed countries. They have closed down car factories across Europe. They have closed down car factories across America and Canada. Australia is in a similar boat so we have a similar outcome. General Motors is moving manufacturing to less costly locations such as China, Thailand, Mexico, Brazil and countries in Africa. It makes sense for them to do this as they can import cars to Australia from these countries with very minimal costs.

Will Holden continue to drape its marketing campaigns with kangaroos and the Aussie flag over the latest car fresh from the factory in China? Will Holden hand the cash back that was given to them to keep manufacturing cars here? I think Mitsubishi collected a lot of cash from the government and then packed up a short time later.




Gizmo
SA, 2865 posts
12 Dec 2013 9:30AM
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A guy I work with his brother works for GMH in Adelaide as a designer and it well known that GMH does not have a complete flow through of (reliable) models in their range.
Most other makes have small beginners cars to mid size, to sports, to family, to work, to SUV, to prestige, to retirement level models. This forms brand loyalty. GMH does not have that ..... this all ended when they dumped the Torana and Monaro years ago.

So GMH has been out of step with community needs and desires for more than 20 years.............

myusernam
QLD, 6124 posts
12 Dec 2013 9:11AM
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Gizmo said..

A guy I work with his brother works for GMH in Adelaide as a designer and it well known that GMH does not have a complete flow through of (reliable) models in their range.
Most other makes have small beginners cars to mid size, to sports, to family, to work, to SUV, to prestige, to retirement level models. This forms brand loyalty. GMH does not have that ..... this all ended when they dumped the Torana and Monaro years ago.

So GMH has been out of step with community needs and desires for more than 20 years.............


torana would equate to the cruze now?
Monaro just a two door commodore. I think they brought these back recently.
i suggest it would have more to do with high labour and business costs and a high dollar.

Gizmo
SA, 2865 posts
12 Dec 2013 10:03AM
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Yes the Cruze would equal a Torana and the Monaro was re-introduced as a sports model.......... as a last ditch effort for GMH to TRY and claw back some market in these areas............All too late unfortunately.
The Camira was a failure the Astra wasn't much better. A guy at work had a Camira while driving to work one day pulled back on the steering wheel and it came off (yes at 100km/h on a freeway) It had NEVER had a steering wheel nut.
The years these models were on the market was the time the Jap cars took over.

Stubbies
WA, 1126 posts
12 Dec 2013 7:42AM
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myusernam said..

Gizmo said..

A guy I work with his brother works for GMH in Adelaide as a designer and it well known that GMH does not have a complete flow through of (reliable) models in their range.
Most other makes have small beginners cars to mid size, to sports, to family, to work, to SUV, to prestige, to retirement level models. This forms brand loyalty. GMH does not have that ..... this all ended when they dumped the Torana and Monaro years ago.

So GMH has been out of step with community needs and desires for more than 20 years.............


torana would equate to the cruze now?
Monaro just a two door commodore. I think they brought these back recently.
i suggest it would have more to do with high labour and business costs and a high dollar.


Mate a rusty, dented Torana is superior to a Cruze; if you bought one you have my sympathy. Everything from faded wing mirrors because of crappy paint jobs on new cars, chrome stripping off door handles, transmissions self destructing, camshafts wearing out in under 20000 km's, bcm's (body control modules) failing leaving a vehicle unable to start or shut off, ecm's (engine control modules) which fail for no apparent reason so no brmmm, brmmm. Radios that will not work or conversly, turn off, or the screen fails, and when they fail cost over $2200 to replace. Panel and seat trim that cracks and breaks within weeks of purchase, sensors that fail and light up your dash, or beep until replaced. You wonder why Holden is financially flucked, it's the unreliable, poorly made, vehicles that they produce. Don't get me started on the Colorado, the Captiva, or the VE ute...

Zachery
597 posts
12 Dec 2013 8:25AM
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I laugh when I see people blaming this on the Abbott govt, so the car manufacturing business has been doing prospering over the last few years has it?? What chance does Holden manufacturing have if the parent company does not want to support it! this was inevitable unless any govt just kept throwing money at it!!! Having said that I do feel for the workers who will lose their jobs

Ian K
WA, 4049 posts
12 Dec 2013 8:30AM
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Stubbies said..



Mate a rusty, dented Torana is superior to a Cruze; if you bought one you have my sympathy. Everything from faded wing mirrors because of crappy paint jobs on new cars, chrome stripping off door handles, transmissions self destructing, camshafts wearing out in under 20000 km's, bcm's (body control modules) failing leaving a vehicle unable to start or shut off, ecm's (engine control modules) which fail for no apparent reason so no brmmm, brmmm. Radios that will not work or conversly, turn off, or the screen fails, and when they fail cost over $2200 to replace. Panel and seat trim that cracks and breaks within weeks of purchase, sensors that fail and light up your dash, or beep until replaced. You wonder why Holden is financially flucked, it's the unreliable, poorly made, vehicles that they produce. Don't get me started on the Colorado, the Captiva, or the VE ute...


The Torana was made in Australia with a high local content. The Cruze is assembled here based on a Global standard platform. 25% of the Cruze components are made in Australia. The Commodore is built on a local platform using ~ 50% foreign parts. Global platforms are the way manufacturers are going. The Colorado and Captiva are fully imported.

The skill is in manufacturing parts for Global platforms. The alternative plan, that kept the Holden name in Australia, was to drop the local Commodore platform and assemble another larger global platform car alongside the Cruze. The skills we've lost are the ability to bolt in gearboxes and press a few panels.

Hopefully the local parts manufacturers can continue to supply global platforms.


www.theguardian.com/business/2013/dec/10/holden-admits-local-content-will-halve-if-production-stays-in-australia

Paradox
QLD, 1326 posts
12 Dec 2013 10:44AM
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kiteboy dave said..

Abbott government pushed them out, for better or worse.



If questioning the logic of endlessly sinking large amounts of public taxpayer money into an unprofitable business is "pushing them out" then I guess you can call it that. Did Labour push out Ford, or was that just an unfortunate coincidence?

Holden is closing because no one buys their cars and they make the cars they do sell for more than they sell them for, not because this or any Government pushed them out, that is just political swill.

For a manufacturing industry to survive it needs to be profitable and no amount of long term subsidy will make it so. Subsidies are a bit like crack cocaine, short term fix gives a long term habit that does not address the underlying problem and leaves you worse off than when you started.

Cost of production is the issue facing Australian manufacturing. Unless we can match Asia/US/Eu wages, productivity and cost of operating it is a lost cause and that is not going to happen while Australia enjoys high minimum wages, huge income from resources and we are all happy to import cheap OS goods.

My advice is to ensure your kids are well educated and follow career paths in areas that Australia does have a future in, as I can't see any of the above changing in the near future.

With regard to wrecking balls or vision or strength of government, I guess time will tell, but I will say that I would agree with any approach that supports and helps profitable businesses grow and thrive rather than focuses on trying to prop up businesses that are clearly failing. One has a future and one doesn't.

dmitri
VIC, 1040 posts
12 Dec 2013 12:14PM
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what will be the cops cars then ? camry hybrids ? they are only locals left.

Paradox
QLD, 1326 posts
12 Dec 2013 11:24AM
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dmitri said..

what will be the cops cars then ? camry hybrids ? they are only locals left.


Most cop cars I see in Qld now are Aurions...very few Fords or Holdens.

sn
WA, 2775 posts
12 Dec 2013 9:30AM
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dmitri said..

what will be the cops cars then ? camry hybrids ? they are only locals left.



until Toyota pulls the pin and bail out.

kiteboy dave
QLD, 6525 posts
12 Dec 2013 11:47AM
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Paradox said..
With regard to wrecking balls or vision or strength of government, I guess time will tell, but I will say that I would agree with any approach that supports and helps profitable businesses grow and thrive rather than focuses on trying to prop up businesses that are clearly failing. One has a future and one doesn't.


Abbott: Jan 19, 2012: "Its very, very important very, very important that we keep a car industry in Australia."

Abbott: April 11, 2013: "...and yes where an Australian car can do the job, an Australian car should be purchased by the...Gov."

Tony Abbott Aug 21, 2013: "we have a good record when it comes to working with the car manufacturers to help them...to flourish

Abbott: Nov 8, 2013: "...we want the car industry to have a long-term, viable future in this country

And they called her Juliar.


Australian Financial Review: Hockey Dares GM to Leave


oops. Joe flubs it again.

mr love
VIC, 2356 posts
12 Dec 2013 1:59PM
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Yesterday was a very sad day for me personally, seeing maybe what could be the fatal blow struck to an industry that I have worked in and loved for 25 years and knowing that many, many people who I have known and worked with for lots of years will be soon out of work and wondering how they will provide for their families. There is lots of emotional, divisive rhetoric and opinions about what could/ should have been done and I obviously have a strong view. I am not going to add to this emotional rhetoric but I do want to explain a few things about the Global Auto Industry and the role of government and hopefully correct some mis- information.

ALL countries that have vehicle manufacturing subsidise the industry with either tariffs, co- investment or other means. Out of the 13 countries that build cars Australia was the least subsidised. It is also one of the most open and competitive markets due to low levels of protection and our high currency attracting lots of imports. You simply cannot attract the multinationals to build cars in your country without some form of co-investment or protection, why, because it is not a level playing field and other countries are dangling big carrots to attract that investment, that is the way of the business world.

The Australian Government was divided on their position to ongoing support, they had the facts, the timelines yet the rhetoric was mixed and at times very negative and even aggressive. There were many factors in GMs decision to pull the pin but you would be naive to think that the government behaviour was not a factor.

The flow on effects of having large scale manufacturing like automotive are large. It employs lots of people, it invests in R&D, it creates a chain of first, second and third tier suppliers who in turn employ lots of people. It attracts foreign investment. It trains and develops skills, supports educational institutions in fields such as engineering and design. I could go on and on. If you don't believe me then go and read the US treasuries report into the 2008/2009 bailout of GM and Chrysler. It ultimately cost the US taxpayer 10.5 billion and saved them 103 billion in lost taxation, unemployment benefits and food stamps and saved a minimum of 1.5 million jobs.

I hear lots of "Holdens are crap" and "nobody wants them" . Some facts... Commodore and Cruze are both top 5 sellers in a market of over 250 different models. People are buying them, yes not in the numbers they were 20 years ago but nobody is or ever will again, the market has changed dramatically.
VF Commodore has just won multiple awards from the Media and Automotive bodies around the country. They do not give these awards to "crap", it is a genuinely world class product. Holden workers should stand proud.

I hope the sector can survive as the ramifications to manufacturing in this country are huge. If we lose this industry we will regret it long term. In ten years time if I hear a "free tradeist" liberal politician bitching about the fact that we no longer make anything in this country you know what my reaction will be... How does F..Off sound!!!!

Bugger , I did say I would not get emotional.

CMC
QLD, 3954 posts
12 Dec 2013 1:22PM
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Its a pretty simple mathematic equation:

- What is the cost of lost money flowing through the economy of 250K people being out of work

- What is the cost of welfare of these people.

Add the 2 numbers together.


Now look at the cost to support Holden to continue manufacture.


Which is cheaper? Take that option.....


Its obviously supporting Holden. The Govt screwed up.

Carantoc
WA, 6666 posts
12 Dec 2013 12:27PM
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kiteboy dave said..

Abbott: Jan 19, 2012: "Its very, very important very, very important that we keep a car industry in Australia."

Abbott: April 11, 2013: "...and yes where an Australian car can do the job, an Australian car should be purchased by the...Gov."

Tony Abbott Aug 21, 2013: "we have a good record when it comes to working with the car manufacturers to help them...to flourish

Abbott: Nov 8, 2013: "...we want the car industry to have a long-term, viable future in this country

And they called her Juliar.




But didn't :

Gillard : March 2012 : (word to the effect of) "With this $300m of tax payers cash we have secured Holden's future for the next 10 years"


I think that any politician can say what they believe to be true and be caught out by the market.

Exactly how much has Holden said it needs from the Government to stay ?

Holden : yesterday : "it is not government action or inaction that has resulted in this decision"



if the US, the EU, China and recently Japan artificially devalue their currencies it kind of makes it hard to make and export anything to any of them.


Iron ore, bauxite, coal and LNG leaving the Australian coast from the same port for somebody else to add value to and manufacture with, and all you get is the Libs and Labs arguing about free hand-outs to a car maker.


Australia needs to get smart. Youse really are a dumb country. Maybe Clive Palmer isn't quite as crazy as everyone thinks.


(edit : scrub that last thought, he is)

harry potter
VIC, 2777 posts
12 Dec 2013 4:34PM
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Labor fanboys blaming this on the govt........ make me laugh.

GM had already decided to pull out of Australia if the govt gave them more money they would have just banked it and pulled out anyway....

I for one think Holden make great cars and they are terriffic value.........but times have changed and the majority of people dont want large 6 and 8 cylinder cars... this is a FACT.

The Australian car industry has been well protected for a long time ...compare the prices of vehicles overseas in many cases we pay over double for BMWs Merc's etc..... these are standard sedans in europe. Unfortunately badge snobbery and different wants and needs has seen the consumer move away from Fords and Holdens......

I big portion of the blame lies with the advent of the SUV these days mums and dad who want a the space of a large car ( Ford or Holden ) and something that can soak up country miles are buying SUV's.

its a sad day indeed but a necessary evil.... no point in flogging a dead horse

Cal
QLD, 1003 posts
12 Dec 2013 4:04PM
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Industrialised Country? but what are we when we dont have industry?
Advanced economy? but what if it is 'too expensive' to do business?

Seems to me that we too easily lose track of the big picture. We are seeing it over and again, our mining, our industry, our environmental stances. Back to basics everyone, please think about sustainability for us and our future generations. The quick buck, the immediately useful foreign 'investment', the simple disposal of our waste, they may be the simple option for you, but what about the future. To rehash an old advertising slogan; 'Do The Right Thing'.

CMC
QLD, 3954 posts
12 Dec 2013 4:09PM
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Australia has Dutch Disease, there are no questions.

www.investopedia.com/terms/d/dutchdisease.asp

Paradox
QLD, 1326 posts
12 Dec 2013 4:36PM
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kiteboy dave said..


Abbott: Jan 19, 2012: "Its very, very important very, very important that we keep a car industry in Australia."

Abbott: April 11, 2013: "...and yes where an Australian car can do the job, an Australian car should be purchased by the...Gov."

Tony Abbott Aug 21, 2013: "we have a good record when it comes to working with the car manufacturers to help them...to flourish

Abbott: Nov 8, 2013: "...we want the car industry to have a long-term, viable future in this country

And they called her Juliar.




Maybe I'm reading things wrong, but which of those are lies? Are you suggesting that he did or should have ended those comments up with an "at any cost"? This is what you seem to be implying as that is what the core of this issue is - ie how much should the Australian taxpayer pay to keep an industry afloat.

I think it is ludicrous that anyone would suggest any Australian Government would have a policy of getting rid of or not supporting a large industry....well I am sure the opposition will say it.

I would agree the Government has not handled the media on this very well.

CMC
QLD, 3954 posts
12 Dec 2013 5:11PM
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Paradox said..


I would agree the Government has not handled the media on this very well.



Are there any examples of them handling any media well?


Seems like as soon as Rupert got his new toy he pulled his troops away from the smoothing in his media outlets.

Poida
WA, 1916 posts
12 Dec 2013 3:42PM
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the govt subsidy just had to continue until the $AUD came down to allow them to compete more with other countries.

The Australian Govt (Abbott and Hockey) basically had the chance to subsidise the industry until the currency was better off. GM called the bluff and screwed over the australian industry.

GM in Australia failed to change with the market and times



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Forums > General Discussion   Shooting the breeze...


"HOLDEN - Invincible or Inevitable?" started by Stuthepirate